Telegram bot tokens are no exception and are going through a tough day along with the entire cryptocurrency market
Bitcoin (BTC) has fallen below $50,000 today, triggering a wave of liquidations worth over $1 billion in the last 24 hours. As a result, Telegram bot tokens have also come under attack. The bearish sentiment is intensified by skeptical investors who decided to sell in the hope of profit, but ended up suffering losses.
Banana Gun Owners Suffer Losses
The ability to create bots is one of the main features of the popular Telegram messenger. By interacting with the messenger's API, bots allow you to automate a number of functions. Banana Gun is one of the popular tokens of the ecosystem. However, the price of BANANA has been falling lately and is now at a multi-month low.
The depressed mood continues due to the lack of optimism among investors. By the end of July, they began dumping assets in panic. As a result, this caused significant turbulence in the market. The hasty sell-off led to unprecedented losses for Banana Gun, marking a historic decline for the asset. The massive sell-off caused the token to suffer its largest losses in its history.
As a result, BANANA is now significantly oversold. This is also highlighted by the relative strength index (RSI). It indicates that the token is extremely undervalued. This is only the second time since the token was launched that BANANA has been oversold. This rare event highlights the severity of the current market conditions.
Price forecast: small chance of rebound
The token price has surprisingly held steady above the critical support level of $26. It has been tested for strength many times and has not allowed the price to fall below $25 for more than five months.
This gives hope that BANANA will bounce off this support again. However, given the above factors and the token’s 58% drop over the past two weeks, the recovery may take some time.
If demand does overcome pessimism, the price may try to break through the resistance at $36. A successful break of this barrier will cancel the bearish scenario.